Higher On Improved Labour Force Data

The Australian dollar is slightly lower, after official data showed a falling monthly unemployment rate.

At 1200 AEDT on Thursday, the currency was trading at 104.68 US cents, down from 104.72 US cents at Wednesday’s close.

Since 0700 AEDT on Thursday, it has traded between 104.42 US cents and 104.79 cents.

OzForex head of Corporate Dealing and Media Relations Asia Pacific Jim Vrondas said a better-than-expected job reading for November had pushed the Australian dollar immediately higher, but it was lower than at yesterday’s close.

‘It’s a better result than the market was expecting,’ he said.

‘And it’s a strong reading on the face of it – although the participation rate is down a bit, and that can skew the numbers a bit.

‘The fact that the economy can add almost 14,000 jobs in the month, when the market was expecting a flat number, makes it a good result.’

On Thursday morning, the Australian Bureau of Statistics reported unemployment falling to 5.2 per cent in November, from 5.4 per cent in October.

Total employment rose 13,900 to 11.546 million in the month, seasonally adjusted.

Mr Vrondas said the Aussie dollar could reach above 105 US cents by the end of the week, although trade balance data on Friday could pose a negative risk.

‘We expect it to push past 105 (US cents) for the time being, and have a look at 106 cents,’ he said.

Meanwhile, Australian bond futures prices were mixed at noon.

At 1200 AEDT on Thursday, the December 10-year bond futures contract was at 96.925 (implying a yield of 3.075 per cent), up from 96.900 (3.100 per cent) on Wednesday afternoon.

The December three-year bond futures contract was unchanged at 97.380 (2.620 per cent).